Oracle has Apple within its grasp

Expected acquisition by Ellison would chase wolves away from vendor's door.

Apple's channel was bracing itself for a series of further shocks ass door. speculation mounted that Oracle will acquire or announce a major investment in the troubled manufacturer.

A major announcement about the future of the manufacturer is expected on 10 November. Since Oracle CEO Larry Ellison's appointment to the Apple board in August, Silicon Valley sources have suggested Ellison will push Apple co-founder Steve Jobs to use the next-generation Rhapsody operating system as the kernel for a network computer.

Mark McGillivray, an analyst at US-based H&M Consulting, said he believed that the announcement would revolve around a major financial interest on the part of Oracle.

'If Oracle could agree a deal which would satisfy the shareholders, it would be cheaper for it to buy the company outright.'

McGillivray added: 'This is the last chance Apple will get. If it doesn't pull it off it will be in the bankruptcy courts by the end of the year.'

It has also been suggested that Apple will announce a direct marketing campaign.

Apple is due to reveal changes to its US distribution strategy, designed to reduce channel inventory and strengthen existing relationships with Ingram Micro and Micro Age.

Apple UK managing director Jon Molyneux and channel sales director Julian Klein will make 'a major announcement' to the channel at Mac Expo this week. But UK resellers and distributors have ruled out that Apple will take the direct route.

Len Saben, senior business manager of volume products at Computers Unlimited, said: 'I can't see it happening here. It would be very difficult to implement in the UK.' Other channel sources have suggested that Apple plans a UK build-to-order programme.